The Andhra Pradesh Authority for Advance Ruling(TAAR) has held that supply of pre packaged and labeled rice upto 25 KGs to factories of exporter would apply Goods and Service Tax (GST) .
The applicant Seetharamanjaneya Sortex engaged in the business of manufacturing and supply of rice. The applicants have three types of suppliers. Customers from abroad, customers located in India who purchase for the purpose of export on bill to ship basis and customers located in India who purchase rice from for the purpose of exports.
The applicant has sought an advance ruling in respect of Applicability of GST with respect to the supply of pre-packaged and labeled rice upto 2KGs to factory of exporter.
C.S Suman Banzal on behalf of the applicant argued that rice is packed in empty bags which are printed and labeled as per the direction of the exporter and the prepacked rice is sent to the exporter . The exporter exports the pre packaged rice to foreign buyers.
The two member bench of Authority of Advance Ruling comprising K Ravi Sankar (Commissioner of State Taxes) and R V Pradamesh Banu (Joint Commissioner of Central Tax ) observed that supply of pre packaged and labeled rice upto 25 KGs to factories of exporter would apply Goods and Service Tax .
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